ICTSI Net Income Up 22% in 2018

Maritime Activity Reports, Inc.

March 15, 2019

Basra Gateway Terminal. Photo: ICTSI

Basra Gateway Terminal. Photo: ICTSI

Manila-head quartered port and terminal operator International Container Terminal Services (ICTSI) has released solid results for 2018. ICTSI’s box volumes were higher, revenues increased and the group generated higher profit.

The port operator said in a stock exchange annoucement that its consolidated volume higher by six percent to 9,736,621 twenty-foot equivalent units (TEUs) (FY2017: 9,153,458 TEUs) and revenue from port operations increased 11 percent to US$1.4 billion (FY2017: US$1.2 billion).

Its net income attributable to equity holders up strongly by 22 percent to US$221.5 million (FY2017: US$182.1 million).

Enrique Razon, Chairman of ICTSI said: “I am pleased to report strong full year operating results for 2018.  Our drive in maintaining positive volume growth organically and through M&A, our focus on cost and operating efficiency, and the constructive global trade dynamics outside of the U.S.-China “trade war” combine to provide a case for cautious optimism in 2019.”  

The increase in net income was mainly due to strong operating income from organic terminals; a decrease in the Company’s share in the net loss at Sociedad Puerto Industrial Aguadulce S.A. (SPIA), its joint venture container terminal project with PSA International Pte Ltd. (PSA) in Buenaventura, Colombia, which decreased from US$36.8 million in the year of 2017 to US$23.4 million for the same period in 2018 as the company continued to ramp-up container volume; lower restructuring and separation costs; and a US$2.8 million non-recurring gain from the pre-termination of interest rate swap related at its terminal in Manzanillo, Mexico in May 2018.  

The increase however was tapered by higher fixed port lease expense at Melbourne, Australia; a US$5.8 million non-recurring impairment charge on the goodwill at its terminal in Davao, Philippines in 2018; and a US$7.5 million non-recurring gain on the termination of the sub-concession agreement in Nigeria in the second quarter of 2017.  

Excluding the impact of the interest rate swap pre-termination, impairment charge and termination of the sub-concession agreement, consolidated net income attributable to equity holders would have increased by 29 percent.  

The Group’s capital expenditure for 2019 is expected to be approximately US$380.0 million.  The estimated capital expenditure budget will be utilized mainly for the ongoing expansion projects in Manila, Mexico and Iraq; equipment acquisitions and upgrades; and for maintenance requirements.

Maritime Reporter Magazine Cover Jul 2019 - Cruise Vessel Design & Outfit

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News